This document provides an overview of Md Mahasin's thesis on reporting and disclosure of IASs and IFRS with review and compliance in the banking industry of Bangladesh. It was submitted to Amirus Salat, an assistant professor at the University of Dhaka. The thesis examines the compliance of several major banks in Bangladesh - Shahjalal Islami Bank, IBBL Islamic Bank, One Bank, Janata Bank and Pubali Bank - with IAS 1 on financial statement presentation, IAS 7 on statements of cash flows, IAS 10 on events after the reporting period, IAS 24 on related party disclosures, and IFRS 8 on operating segments. The document outlines the objectives, methodology and limitations of
This document provides an overview of Md Mahasin's thesis on reporting and disclosure of IASs and IFRS with review and compliance in the banking industry of Bangladesh. It was submitted to Amirus Salat, an assistant professor at the University of Dhaka. The thesis examines the compliance of several major banks in Bangladesh - Shahjalal Islami Bank, IBBL Islamic Bank, One Bank, Janata Bank and Pubali Bank - with IAS 1 on financial statement presentation, IAS 7 on statements of cash flows, IAS 10 on events after the reporting period, IAS 24 on related party disclosures, and IFRS 8 on operating segments. The document outlines the objectives, methodology and limitations of
This document provides an overview of Md Mahasin's thesis on reporting and disclosure of IASs and IFRS with review and compliance in the banking industry of Bangladesh. It was submitted to Amirus Salat, an assistant professor at the University of Dhaka. The thesis examines the compliance of several major banks in Bangladesh - Shahjalal Islami Bank, IBBL Islamic Bank, One Bank, Janata Bank and Pubali Bank - with IAS 1 on financial statement presentation, IAS 7 on statements of cash flows, IAS 10 on events after the reporting period, IAS 24 on related party disclosures, and IFRS 8 on operating segments. The document outlines the objectives, methodology and limitations of
This document provides an overview of Md Mahasin's thesis on reporting and disclosure of IASs and IFRS with review and compliance in the banking industry of Bangladesh. It was submitted to Amirus Salat, an assistant professor at the University of Dhaka. The thesis examines the compliance of several major banks in Bangladesh - Shahjalal Islami Bank, IBBL Islamic Bank, One Bank, Janata Bank and Pubali Bank - with IAS 1 on financial statement presentation, IAS 7 on statements of cash flows, IAS 10 on events after the reporting period, IAS 24 on related party disclosures, and IFRS 8 on operating segments. The document outlines the objectives, methodology and limitations of
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UNIVERSITY OF DHAKA
FACULTY OF BUSINESS STUDIES
ACCOUNTING & INFORMATION SYSTEMS Thesis on Reportin !n" "is#$os%re o& IASs !n" IFRS 'ith O(er(ie) & Co*p$i!n#e in the +!n,in In"%str-. S%per(isor/ Amirus Salat Assistant Professor Department of Accounting & Information Systems Faculty of Business Studies University of Dhaka S%+*itte" B-/ Md Mahasin Dept of A&IS !oll" #$#%& Section'B BBA #$ th Batch S%+*ission "!te/ &( march) %&#% Letter of Transmittal # 0 P a g e Date" ( th march) %&#% Amirus Salat Assistant Professor Faculty of Business Studies University of Dhaka Su*+ect" Su*mitting thesis on reporting and disclosure of IASs and IF!S'( ,ith revie, and compliance in the *anking industry -onora*le Sir) I have the great pleasure to place *efore you my report on reporting and disclosure of IASs and IF!S'( ,ith .vervie, and /ompliance in the *anking industry 0o prepare this report) I have tried to devote my *est effort to find out study relevant materials A careful attention has *een taken ,hile preparing this report 0he information provided in this report is very much authentic and mostly taken from the records) te1ts2 printed documents like annual reports of the respective companies) internets and other sources I sincerely hope and *elieve that my report ,ill secure your approval and its purpose I ,ill *e al,ays availa*le for ans,ering any 3uery a*out this report I re3uest you to forgive me for any mistake that may occur in this report despite my *est effort Sincerely yours Md mahasin Section" B Batch" #$th Department of Accounting & Information Systems % 0 P a g e S%per(isor1s Certi&i#!te 0his is to certify that the thesis paper on 4A Study on reporting and disclosure of IASs and IF!S'( ,ith revie, and compliance in the *anking industry5 has *een su*mitted for the re3uirement of BBA degree from the Department of Accounting and information system) University of Dhaka) carried out *y Md Mahasin) ID 6o'#$#%&) Sec'B) #$ th Batch under my supervision -e is permitted to su*mit the Internship !eport 7777777 Amirus Salat Assistant Professor Accounting and information system University of Dhaka 8 0 P a g e Acknowledgement
At the commencement of this report) I ,ould like to e1press my gratitude to the Almighty for ena*ling me to complete the report 6o ,ork is possi*le to *e completed *y one individual 0his thesis paper is an accumulation of many people9s endeavor I am inde*ted to a num*er of people ,ho helped me to prepare this and for their advices) suggestions) directions) and proper guidelines for this :e ,ould like to e1press our gratitude and ackno,ledge our inde*tedness to our honora*le teacher' Amirus Salat) assistant professor) Department of Accounting & Information Systems) University of Dhaka) for his overall co'operation) guidance) advice and support to prepare this report -e inspired and motivated us ,ith his cordial nature and attitude to learn and to collect & analysis on the information relating to overvie, of IAS & compliance ,ith it 0hanks for all from deep of my heart Executive summary $ 0 P a g e Over the years the business community has admitted that the accounting is the language of business and financial information is a form of language. And undoubtedly, to ensure its usefulness, financial information should not only be intelligible, but also be comparable so that investment and credit decisions can more readily be taken. In such circumstances, a set of international accounting standards will allow new horizons of evolution due to the fact that comparative analysis of the rates of returns established based on the balance sheets and profit and loss account between the companies being in competition become relevant. Also harmonization is absolutely necessary because national standards of financial statements are virtually useless financial markets in more regulated countries are threatened with a loss of market share and multinational corporations must prepare multiple reports for different nations they do business in. In order to accomplish this target the accounting profession developed the solutions like the !AA" or the IA#$I%&#. Among all these standards, I%&# is rapidly gaining acceptance as over '(( countries have recently moved to I%&# reporting or decided to re)uire the use of these standards in the near future and even the *.#. #ecurities and +,change -ommission .#+-/ is considering allowing *.#. firms to prepare their financial statements in accordance with I%&#. In 0angladesh, the IA#s adoption process was initiated in August '111 following a 2orld 0ank grant to the 0angladeshi !overnment for the development of Accounting and Auditing #tandards in 0angladesh. 3he grant was targeted at enhancing the institutional capacity of the I-A0 for the adoption of IA#s in the country. 3he !overnment then delegated the process to the #ecurities and +,change -ommission .#+-/ as the main institution responsible for overseeing the process. 3he #+- empowered the I-A0 to adopt those standards specified by the #+- and the !overnment of 0angladesh. 3hrough the passage of time, the adoption and monitoring of the IA# implementation has been improved. 3he governance regarding this issue has been more strong and efficient. As in the compliance process banking companies in 0angladesh has been adopting different IA#s for their reporting purposes so they can say that they have been complied with I%&# while preparing financial statement. 0anking industries in 0angladesh is flourishing day by day. As a result their compliance with different standards becomes important for them for effective and efficient control of their daily activities. It is important to comply with reporting standards as well. #o here our concern is to check out the compliance with different IA# by different banking companies as far for their reporting purposes. Table of Contents S$. No. 2!e no. E3e#%ti(e S%**!r- ; 0 P a g e Chapter -01 -Introductory part ## Introduction &< #% .rigin of the report &< #8 .*+ective of the report &= #$ Methodology &= #; >imitations of the study &= Chapter -02 - Brief Description about Our Concerned Companies %# Shah+alal Islami Bank >td &( %% I/B Islamic Bank >td &( %8 .ne Bank >td &? %$ 6// Bank >td &? %; Pu*ali Bank >td #& Chapter -03 - Overview of IAs and I!"-# 8# IAS'&#" Presentation of Financial Statements #& 8% IAS'&=" Statement of /ash'Flo,s #8 88 IAS'#&" @vents After !eporting Period #; 8$ IAS'%$"!elated Party Disclosures #< 8; IF!S'&(" .perating Segments #? Chapter -0$ -Compliance with the re%uirement of IAs & I!"-# $# IAS'&#" Presentation of Financial Statements %& $% IAS'&=" Statement of /ash'Flo,s %8 $8 IAS'#&" @vents After !eporting Period %$ $$ IAS'%$"!elated Party Disclosures %; $; IF!S'&(" .perating Segments %< $< /omments on the /ompliance :ith the !e3uirements of IASs and IF!S'( %< Ch!pter 4564 Con#$%"in 2!rt ;# Pro*lem Identified %< ;% /onclusion %= ;8 !eferences %( < 0 P a g e Chapter -01 -Introductory 'art Introduction Pu*lic limited companies need to provide information a*out the financial position) financial performance and cash'flo,s for the accounting period they have performed to the different users) ie stockholders) de*tors) investors) suppliers) customers) ta1 authority) government) social groups) of this information But this information is normally prepared *y those ,ho normally have the tendency to violate the information for the sake of their o,n interest For this reason) accounting standards have *een set in order to ensure that information provided is fair @very pu*licly traded company need to follo, those standards in order to make sure that they have provided information fairly tailored to stakeholders According to IAS'#) the su*mission of financial statements for purposes of general information has to make ensure that they are compara*le) *oth ,ith the financial statements of the same entity in prior years) as ,ith those of various other entities 0o achieve this o*+ective) the Standard states) firstly) general re3uirements for su*mitting financial statements) and then provides guidelines for determining its structure) ,hile laying do,n minimum re3uirements on its contents IAS'= ensures preparation of cash'flo, statements according to the information a*out the net operating cash'flo,s) cash'flo,s from financing activities and cash'flo,s from investing activities and to make sure disclosures relating to cash'flo,sIAS'#& standard shall *e applied for accounting for and disclosure of the events after the reporting period Application of IAS'%$ makes sure that information a*out the financial position and performance may affect *y the e1istence of related parties and *y transactions and outstanding *alance ,ith such parties is true and fair IF!S ( applies to the separate or individual financial statements of an entity Aand to the consolidated financial statements of a group ,ith a parent for providing information a*out the operating segments In our report) ,e have studied ,hether these accounting standards are properly follo,ed *y *anking companies in practice = 0 P a g e Origin of the Study Bachelor of Business Administration ABBAB program is a specialiCed course Department of accounting & information systems arranges many effected education programs to provide some efficient people in the *usiness sector of Bangladesh 0he ,hole program is not only *ased on the theoretical *ut also practical through the survey program 0his paper is entitled D9reporting and disclosure of IASs and IF!S'( ,ith revie, and compliance in the *anking industry 4emerged from the fulfillment of the internship program 0o cope ,ith our practical kno,ledge our department has provided us this opportunity @very student is attached ,ith an organiCation for the completion of the internship program I have focused on the reporting and disclosure of IASs and IF!S'( ,ith revie, and compliance in the *anking industry *ecause reporting and discloser is the today9s concern issue Ob!ectives of the "e#ort .ur o*+ectives is #B 0o introduce the concepts of different IASs %B 0o gather practical kno,ledge a*out implication of IASs in *anking industries 8B 0o analyCe the prospects of compliance of IASs in our country $B 0o sho, difference *et,een theoretical and practical kno,ledge ;B 0o concentrate on the improvement of practical area of kno,ledge <B 0o evaluate the disclosure of the annual report =B /ompliance status of annual repot related to IASs #)=)#&)%$)8%)8? and I@!S ( (B /omparison among different company a*out reporting status ( 0 P a g e ?B Usefulness of disclosure to the entities financial information #&BEovernment regulation a*out disclosure ##BPeople perception a*out reporting and disclosure #%B@ntities ethical status a*out disclosure #8B@ffectiveness of disclosure #$BPeople e1pectation a*out disclosure #;B>egal steps a*out disclosure and presentation $ethodology of the "e#ort My study is *ased on primary as ,ell as secondary data I have collected data from secondary source :e mainly collect our information a*out companies9 financial statements and their focus on the implication of IASs I mainly collect information from annual report of those companies & through their ,e*sites 2ri*!r- In&or*!tion7D!t! Practical desk ,ork .*servation File and documents of the *ank !elevant document9s study as provided *y the officers concerned In depth face'to'face intervie,s ,ith concerned *anker9s personnel
Se#on"!r- In&or*!tion7D!t! Annual reports of Fanata Bank >imited !elevant *ikes) ne,spaper and +ournals :e* sites Different Pu*lished Data such as circulars) periodicals) statistical reports ? 0 P a g e Moreover I use different articles to analysis our su*+ect matters Follo,ing are the key to *e noted) #B :e have used *oth primary and secondary information for the purpose of preparing our reports %B :e have taken many our information from pu*lished annual reports of concerned companies 8B Some other information has *een collected from net through Eoogle searching $B 0e1t *ooks have *een used for thorough analysis Limitations of Our "e#ort During the course of preparation of the report I faced some pro*lems that might *e termed as the limitation of study It is difficult to include all the se3uence of this study for *eing of G 0ime limitation >ack of Eood o*servation and personal in3uiries in the related matters >ack of trustiness >ack of material related to thesis >ack of strong reference >ack of third party information >ack of kno,ledge a*out IASs And IF!S Insufficient data At first) ,hen I ,as going to start the report then I didn9t have any strong reference *y ,hich I can easily collect our information #& 0 P a g e Chapter -02 - Brief Description about Our Concerned Companies (nited Commercia) Ban* +td, Sponsored by some dynamic and reputed entrepreneurs and eminent industrialists of the country and also participated by the Government, UCB started its operation in mid 1983 and has since been able to establish one of the largest netor! of 11" branches among the first generation ban!s in the private sector# $ith its firm commitment to the economic development of the country, the Ban! has already made a distinct mar! in the realm of %rivate Sector Ban!ing through personali&ed service, innovative practices, dynamic approach and efficient 'anagement# (he Ban!, aiming to play a leading role in the economic activities of the country, is firmly engaged in the development of trade, commerce and industry thorough a creative credit policy# Management (he Ban! has in its 'anagement a combination of highly s!illed and eminent ban!ers of the country of varied e)perience and e)pertise successfully led by 'r# '# Shah*ahan Bhuiyan, a dynamic ban!er, as its 'anaging +irector and ell educated young, energetic and dedicated officers or!ing ith missionary &eal for the groth and progress of the institution# CORPORATE INFORMATION Registered Office: Bulus Center %lot,C$S,-./,1 0oad1 2o,33 Gulshan avenue, +ha!a,1414 %hone 1 588,64,8874766 8a) 1 588,64,8874766,"666 588,64,8874763 9,'ail 1 $ebsite1 #ucbl#com ## 0 P a g e Shah!alal Islami %ank Shah+alal Islami Bank commenced its operation as a commercial *ank on #& May) %&&# under the Bank /ompanies Act) #??# 0his *ank follo,s Islamic Shariah strictly 0his *ank started functioning ,ith a vision to develop itself as a uni3ue Islami *ank of the country ,ith all modern services and products availa*le for the clients And at the same time it ,ould contri*ute for sustaina*le gro,th of the national economy All the activities of the *ank are continuously monitored *y the Shariah /ouncil of the *ank for implementation and compliance of Islamic Shariah principles 0he council is constituted of prominent ulemas) e1perienced *ankers) reputed la,yers and eminent economists of the country Corporate Information -ead .ffice" Uday SanC) Plot 6oS@AAB %HB) Eulshan South Avenue) Eulshan ' #) Dhaka'#%#% :e*site" ,,,shah+alal*ankcom*d IC% Islamic %ank Ltd& I/B Islamic Bank >td has *een incorporated on April) #?(= as a pu*lic limited company under the /ompanies Act) #?#8 to undertake and carry out all kinds of *anking) financial and *usiness activities) transactions and operations in strict compliance ,ith the principles of Islamic >a, AShariahB relating to *usiness activities in particular avoiding usury in credit and sales transactions and any practice ,hich amounts to usury /ertificate for commencement of *usiness has *een issued to the *ank on April) 8&) #?(= 0he Bank has *een authoriCed *y the Bangladesh Bank to carry on the *anking *usiness in Bangladesh ,ith effect from May $) #?(= -o,ever) actually *anking operations commenced on May %&) #?(= I/B Islamic Bank >td Bangladesh and another thirteen *anks in different countries of Africa) Asia and @urope are the mem*ers I/B Financial Eroup -oldings AE I/B Banking Eroup has presence in #$ #% 0 P a g e countries of Africa) Asia and @urope !ecently it has e1panded its horiCon to >ao PD! and Mala,i Significant Accounting Polices Basis of Accounting : (he accompanying financial statements, comprising Balance Sheet, %rofit and :oss .ccount and 2otes thereto have been prepared according to Ban!ing Companies .ct, 1991 and Bangladesh Ban! circulars applicable to accounts, on a going concern basis, under historical cost convention and are based on generally accepted accounting principles# All kinds of commercial *anking services are provided *y the *ank to the customers o*serving the provisions of the Bank /ompany Act #??#) Bangladesh BankIs directives and the principles of Islamic Shariah One %ank Ltd& .ne Bank >imited incorporated in Bangladesh as a pu*lic limited company ,as esta*lished in #??? under the /ompanies Acts #??$ It started *anking operations on #$ Fuly #??? Its authoriCed and paid up capital ,ere 0k #)&&& million and %&%; million respectively 0he capital is divided into ordinary shares of 0k #&& each Fifty percent of its total share capital is reserved for the promoters designated as Eroup'A shareholders and the remaining ;&J for general pu*lic designated as Eroup'B shareholders 0he head office of the *ank is at Dhaka A #&'mem*er *oard of directors including the chairman and a vice'chairman governs the overall affairs of the *ank 0he managing director is its chief e1ecutive In %&&#) it had =8 employees) and $ *ranches) all in ur*an areas THIRD GENERATION 2RIVATE COMMERCIAL BANK/ .B> is a private sector commercial *ank dedicated in the *usiness line of taking deposits from pu*lic through its various saving schemes and lending the fund in various sectors at a higher margin -o,ever) due attention is given in respect of risk undertaking) risk hedging and if not appropriately hedged) reflection of the same in pricing In the financing side) the *ankIs ma+or concentration is in trade finance covering a*out %&((J of total financing as on K@%&&< ,hich is mainly a short'term investment 0he *anks financing concentrate in *oth) ,orking capital finance and long'term finance .B> has ma+or concentration of financing in medium and large industries Since the short'term finance carries lo, risk compared to long'term finance2 the financing strategy of .B> ,ill assist the *ank to keep the risk at minimal Functions of the *ank are deposit mo*iliCation) lending) investment) foreign e1change *usiness and other traditional *anking services 0otal deposits of the *ank amounted to #8 0 P a g e 0k %)%<#% million in Decem*er %&&& and the deposit'mi1 comprised term deposits) savings *ank deposits and current and contingency accounts) etc As a ne, *ank) it could not reach *reak'even and therefore) could not create any reserve funds till 8# Decem*er %&&& 'ational Credit ( Commerce %ank Ltd& 6ational /redit and /ommerce Bank >imited A6//B>B started *anking operations on #= May #??8 ,ith an authoriCed capital of 0k =;& million divided into =; million ordinary shares of 0k #&& each and paid up capital of 0k #?; million 0he paid up capital ,as enhanced to 0k 8?& million in %&&& 6//B> is the restructured form of the first investment company in the country) the 6ational /redit >imited A6/>B) ,hich started *usiness ,ith a paid up capital of 0k ;& million and survived ( years *efore its normal operations ,ere suspended A %8'mem*er *oard of directors) including the chairman and a vice'chairman oversees the affairs of the *ank 0he managing director is its chief e1ecutive In %&&#) the *ank had 8( *ranches and ;&% employees 0he registered head office of the *ank is at Dhaka 0he *ank conducts traditional commercial *anking functions as ,ell as foreign e1change *usiness and provision of other financial services At present) the *ankIs main focus is on the delivery of personaliCed customer services and e1pansion of its clientele *ase Since its inception 2CC Ban! :td# has ac;uired commendable reputation by providing sincere personali&ed service to its customers in a technology based environment# )ubali %ank Ltd& Pu*ali Bank is a private commercial *ank in Bangladesh It has more *ranches than any other private *ank in the country Pu*ali Bank >imited ,as initially esta*lished in @ast Pakistan as Eastern Mercantile Bank Limited in #?;?) under the Bank /ompanies Act of #?#8 In #?=% @astern Mercantile Bank >imited ,as nationaliCed and renamed as Pubali Bank 0he *ank ,as denationaliCed in #?(8) and ,as renamed as Pubali Bank Limited 0he PeopleIs !epu*lic of Bangladesh handed over all assets and lia*ilities of Pu*ali Bank to Pu*ali Bank >imited Since then Pu*ali Bank >imited has *een involved in /ommercial Banking services as the largest *ank in the private sector of Bangladesh having $&& *ranches 0he management of the *ank is vested in a #$'mem*er *oard of directors ,ith the managing director as its chief e1ecutive #$ 0 P a g e Among the private *anks) 2%+!$i B!n, Lt". has the most e1tensive net,ork all over the country It has $&& *ranches in total connecting all economic gro,th centers and commercially promising localities of the country As the first local *ank of the country 2BL is effectively serving the nation since its very inception and it9s still carrying out the responsi*ility very efficiently
Chapter -03 - Overview of IAs and I!"-# IA - 1. 'resentation of !inancia) tatements IAS'# deals ,ith presentation of financial statements Basically) this IAS identifies its o*+ectives and scope It also discloses o*+ectives of financial statements and components of financial statements 0he general feathers of financial statements along ,ith the structure and contents of such financial statements in general are also composed in the IAS'# IAS 8 2RESENTATION OF FINANCIAL STATEMENTS HISTORY OF IAS 8/ March #?=$ @1posure Draft @# Disclosure of Accounting Policies Fanuary #?=; IAS # Disclosure of Accounting Policies Fune #?=; @; Information to Be Disclosed in Financial Statements .cto*er #?=< IAS ; Information to Be Disclosed in Financial Statements Fuly #?=( @#$ Current Assets and Current Liabilities 6ovem*er #?=? IAS #8 Presentation of Current Assets and Current Liabilities August #??= IAS # A#??=B Presentation of Financial Statements superseded IAS # #; 0 P a g e A#?=;B) IAS ;) and IAS #8 A#?=?B # Fanuary %&&? @ffective date of May %&&( amendment to IAS # #< April %&&? IAS # amended for Annual Improvements to IF!Ss %&&? a*out classification of lia*ilities as current # Fanuary %&#& @ffective date of the April %&&? revisions to IAS # < May %&#& IAS # amended for Annual Improvements to IF!Ss %&#& %= May %&#& @1posure Draft of proposed amendments to IAS # relating to Presenting /omprehensive Income # Fanuary %&## @ffective date of May %&#& amendment to IAS # #< Fune %&## Amendments to IAS # issued /lick for More Information # Fuly %&#% @ffective date of Fune %&## amendments to IAS # O+9e#ti(e/ 0he o*+ective of IAS # is to prescri*e the *asis for presentation of general purpose financial statements) to ensure compara*ility *oth ,ith the entityIs financial statements of previous periods and ,ith the financial statements of other entities IAS # sets out the overall re3uirements for the presentation of financial statements) guidelines for their structure and minimum re3uirements for their content LIAS ##M Standards for recogniCing) measuring) and disclosing specific transactions are addressed in other Standards and Interpretations LIAS #8M S#ope/ #< 0 P a g e IAS'# applies to all general purpose financial statements *ased on international financial reporting standards for the reporting entity Ob!ective of *inancial Statements (he ob*ective of general purpose financial statements is to provide information about the financial position, financial performance, and cash flos of an entity that is useful to a ide range of users in ma!ing economic decisions# (o meet that ob*ective, financial statements provide information about an entity<s1 assets lia*ilities e3uity income and e1penses) including gains and losses contri*utions *y and distri*utions to o,ners cash flo,s (hat information, along ith other information in the notes, assists users of financial statements in predicting the entity<s future cash flos and, in particular, their timing and certainty# Com#onents of *inancial Statements . complete set of financial statements should include1 a statement of financial position A*alance sheetB at the end of the period a statement of comprehensive income for the period Aor an income statement and a statement of comprehensive incomeB a statement of changes in e3uity for the period a statement of cash flo,s for the period notes) comprising a summary of accounting policies and other e1planatory notes :hen an entity applies an accounting policy retrospectively or makes a retrospective restatement of items in its financial statements) or ,hen it reclassifies items in its financial statements) it must also present a statement of financial position A*alance sheetB as at the *eginning of the earliest comparative period #= 0 P a g e .n entity may use titles for the statements other than those stated above# 0eports that are presented outside of the financial statements = including financial revies by management, environmental reports, and value added statements = are outside the scope of >80Ss# *air )resentation and Com#liance with I*"Ss (he financial statements must ?present fairly? the financial position, financial performance and cash flos of an entity# 8air presentation re;uires the faithful representation of the effects of transactions, other events, and conditions in accordance ith the definitions and recognition criteria for assets, liabilities, income and e)penses set out in the 8rameor!# (he application of >80Ss, ith additional disclosure hen necessary, is presumed to result in financial statements that achieve a fair presentation# >.S 1 re;uires that an entity hose financial statements comply ith >80Ss ma!e an e)plicit and unreserved statement of such compliance in the notes# 8inancial statements shall not be described as complying ith >80Ss unless they comply ith all the re;uirements of >80Ss -including >nterpretations/# >nappropriate accounting policies are not rectified either by disclosure of the accounting policies used or by notes or e)planatory material# >.S 1 ac!noledges that, in e)tremely rare circumstances, management may conclude that compliance ith an >80S re;uirement ould be so misleading that it ould conflict ith the ob*ective of financial statements set out in the 8rameor!# >n such a case, the entity is re;uired to depart from the >80S re;uirement, ith detailed disclosure of the nature, reasons, and impact of the departure# +oing Concern .n entity preparing >80S financial statements is presumed to be a going concern# >f management has significant concerns about the entity<s ability to continue as a going concern, the uncertainties must be disclosed# >f management concludes that the entity is not a going concern, the financial statements should not be prepared on a going concern basis, in hich case >.S 1 re;uires a series of disclosures# #( 0 P a g e Accrual %asis of Accounting >.S 1 re;uires that an entity prepare its financial statements, e)cept for cash flo information, using the accrual basis of accounting# Consistency of )resentation (he presentation and classification of items in the financial statements shall be retained from one period to the ne)t unless a change is *ustified either by a change in circumstances or a re;uirement of a ne >80S# $ateriality and Aggregation 9ach material class of similar items must be presented separately in the financial statements# +issimilar items may be aggregated only if the are individually immaterial# Offsetting@ .ssets and liabilities, and income and e)penses, may not be offset unless re;uired or permitted by an >80S# Com#arative Information >.S 1 re;uires that comparative information shall be disclosed in respect of the previous period for all amounts reported in the financial statements, both face of financial statements and notes, unless another Standard re;uires otherise# >f comparative amounts are changed or reclassified, various disclosures are re;uired Clearly identify1 the financial statements the reporting enterprise ,hether the statements are for the enterprise or for a group the date or period covered the presentation currency the level of precision Athousands) millions) etcB #? 0 P a g e "e#orting )eriod (here is a presumption that financial statements ill be prepared at least annually# >f the annual reporting period changes and financial statements are prepared for a different period, the entity must disclose the reason for the change and a arning about problems of comparability# Statement of Financial Position (Balance Seet! .n entity must normally present a classified statement of financial position, separating current and noncurrent assets and liabilities# Anly if a presentation based on li;uidity provides information that is reliable and more relevant may the currentBnoncurrent split be omitted# >n either case, if an asset -liability/ category combines amounts that ill be received -settled/ after 14 months ith assets -liabilities/ that ill be received -settled/ ithin 14 months, note disclosure is re;uired that separates the longer,term amounts from the 14,month amounts# Current assets are cashC cash e;uivalentC assets held for collection, sale, or consumption ithin the entity<s normal operating cycleC or assets held for trading ithin the ne)t 14 months# .ll other assets are noncurrent# D>.S 1#""E Current liabilities are those e)pected to be settled ithin the entity<s normal operating cycle or due ithin 14 months, or those held for trading, or those for hich the entity does not have an unconditional right to defer payment beyond 14 months# Ather liabilities are noncurrent# $hen a long,term debt is e)pected to be refinanced under an e)isting loan facility and the entity has the discretion the debt is classified as non,current, even if due ithin 14 months# >f a liability has become payable on demand because an entity has breached an underta!ing under a long,term loan agreement on or before the reporting date, the liability is current, even if the lender has agreed, after the reporting date and before the authori&ation of the financial statements for issue, not to demand payment as a conse;uence of the breach# Foever, the liability is classified as non,current if the lender agreed by the reporting date to provide a period of grace ending at least 14 months after the end of the reporting period, ithin hich the entity can rectify the breach and during hich the lender cannot demand immediate repayment# 'inimum items on the face of the statement of financial position AaB property) plant and e3uipment A*B investment property AcB intangi*le assets AdB financial assets Ae1cluding amounts sho,n under AeB) AhB) and AiBB %& 0 P a g e AeB investments accounted for using the e3uity method AfB *iological assets AgB inventories AhB trade and other receiva*les AiB cash and cash e3uivalents A+B assets held for sale AkB trade and other paya*les AlB provisions AmB financial lia*ilities Ae1cluding amounts sho,n under AkB and AlBB AnB lia*ilities and assets for current ta1) as defined in AoB deferred ta1 lia*ilities and deferred ta1 assets) as defined in ApB lia*ilities included in disposal groups A3B non'controlling interests) presented ,ithin e3uity and ArB issued capital and reserves attri*uta*le to o,ners of the parent .dditional line items may be needed to fairly present the entity<s financial position# >.S 1 does not prescribe the format of the balance sheet# .ssets can be presented current then noncurrent, or vice versa, and liabilities and e;uity can be presented current then noncurrent then e;uity, or vice versa# . net asset presentation -assets minus liabilities/ is alloed# (he long,term financing approach used in UG and elsehere = fi)ed assets 5 current assets , short term payables H long,term debt plus e;uity = is also acceptable# 0egarding issued share capital and reserves, the folloing disclosures are re;uired1 num*ers of shares authoriCed) issued and fully paid) and issued *ut not fully paid par value reconciliation of shares outstanding at the *eginning and the end of the period description of rights) preferences) and restrictions treasury shares) including shares held *y su*sidiaries and associates shares reserved for issuance under options and contracts %# 0 P a g e description of the nature and purpose of each reserve ,ithin e3uity 0o provide the information) a complete set of financial statements should include' a A statement of financial position * A statement of comprehensive income c A statement of changes in e3uity d A statement of cash flo, e 6otes & disclosures f /omparative statement of financial position 1/ Str%#t%re !n" #ontent o& &in!n#i!$ st!te*ents" An entity should clarify " 0he name of the statements 0he name of the reporting enterprise :hether the financial statements are for the enterprise or for a group Date or period covered Presentation currency >evel of precision Athousands) millions etcB 4/ A st!te*ent o& &in!n#i!$ position" there is no specific guideline But the assets and lia*ilities should *e classified under current and non'current As per the re3uirement all of our selected companies sho, the follo,ing minimum items on the face of the *alance sheet IAS # A#%B suggested that follo,ing items should *e mentioned on the face of financial statements" property) plant and e3uipment Investment Deferred ta1 asset Inventories 0rade and others receiva*les /ash and /ash e3uivalents Share capital together ,ith share premium) !etained earnings 0rade and other paya*les %% 0 P a g e Provision for income ta1 3/ Dis#$os%res" regarding issued capital and reserves) the follo,ing disclosures are re3uired 6um*er of shares authoriCed) issued) su*scri*ed and paid up capital Par value of share Description of rights) preference and restrictions 0reasury share if any Shares reserved for issuance under options if any Statement of Comprehensive Income Comprehensive income for a period includes profit or loss for that period plus other comprehensive income recogni&ed in that period# .s a result of the 4663 revision to >.S 1, the Standard is no using <profit or loss< rather than <net profit or loss< as the descriptive term for the bottom line of the income statement# .ll items of income and e)pense recogni&ed in a period must be included in profit or loss unless a Standard or an >nterpretation re;uires otherise# D>.S 1#88E Some >80Ss re;uire or permit that some components to be e)cluded from profit or loss and instead to be included in other comprehensive income# (he components of other comprehensive income include1 changes in revaluation surplus AIAS #< and IAS 8(B actuarial gains and losses on defined *enefit plans recogniCed in accordance ,ith IAS #? gains and losses arising from translating the financial statements of a foreign operation gains and losses on remeasuring availa*le'for'sale financial assets 0he effective portion of gains and losses on hedging instruments in a cash flo, hedge .n entity has a choice of presenting1 a single statement of comprehensive income or t,o statements" o an income statement displaying components of profit or loss and %8 0 P a g e o a statement of comprehensive income that *egins ,ith profit or loss A*ottom line of the income statementB and displays components of other comprehensive income 'inimum items on the face of the statement of comprehensive income should include1 revenue finance costs share of the profit or loss of associates and +oint ventures accounted for using the e3uity method ta1 e1pense a single amount comprising the total of AiB the post'ta1 profit or loss of discontinued operations and AiiB the post'ta1 gain or loss recognised on the disposal of the assets or disposal groupAsB constituting the discontinued operation profit or loss each component of other comprehensive income classified *y nature share of the other comprehensive income of associates and +oint ventures accounted for using the e3uity method total comprehensive income (he folloing items must also be disclosed in the statement of comprehensive income as allocations for the period1 profit or loss for the period attri*uta*le to non'controlling interests and o,ners of the parent total comprehensive income attri*uta*le to non'controlling interests and o,ners of the parent .dditional line items may be needed to fairly present the entity<s results of operations# 2o items may be presented in the statement of comprehensive income -or in the income statement, if separately presented/ or in the notes as <e)traordinary items<# Certain items must be disclosed separately either in the statement of comprehensive income or in the notes, if material, including1 ,rite'do,ns of inventories to net realisa*le value or of property) plant and e3uipment to recovera*le amount) as ,ell as reversals of such ,rite'do,ns restructurings of the activities of an entity and reversals of any provisions for the costs of restructuring disposals of items of property) plant and e3uipment %$ 0 P a g e disposals of investments discontinuing operations litigation settlements other reversals of provisions 9)penses recogni&ed in profit or loss should be analy&ed either by nature -ra materials, staffing costs, depreciation, etc#/ or by function -cost of sales, selling, administrative, etc/# D>.S 1#99E >f an entity categori&es by function, then additional information on the nature of e)penses = at a minimum depreciation, amorti&ation and employee benefits e)pense = must be disclosed# 3/ St!te*ent o& #h!nes in e:%it-. .ur o*serving companies have made discloser regarding Profit for the year) income and e1pense for the period this can *e directly tracea*le to e3uity and effects of change in accounting policies to cash flo, Statement 7/ Notes" As per the re3uirement of IAS #) companies should give the follo,ing disclosures a statement of compliance ,ith IF!S summary of significant accounting policies measurement *asis other accounting policies other disclosures including contingent lia*ilities) non financial disclosures From %&&8 a ne, provision has *een made that an entity must disclose in the summery of significant accounting policies the +udgment) apart from those involving estimations) that management has made in the process of applying the entity9s accounting policies AIAS # #&8B IA - 0/. tatement of Cash !)ows Objective of IAS 7 %; 0 P a g e (he ob*ective of >.S I is to re;uire the presentation of information about the historical changes in cash and cash e;uivalents of an entity by means of a statement of cash flos, hich classifies cash flos during the period according to operating, investing, and financing activities# IAS ; STATEMENT OF CASH FLO'S HISTORY OF IAS ; Fune #?=< @1posure Draft @= Statement of Source and Application of Funds .cto*er #?== IAS = Statement of Changes in Financial Position Fuly #??# @1posure Draft @8< Cash Flo Statements Decem*er #??% IAS = A#??%B Cash Flo Statements # Fanuary #??$ @ffective date of IAS = A#??%B < Septem*er %&&= !etitled from Cash Flo Statements to Statement of Cash Flos as a conse3uential amendment resulting from revisions to IAS # #< April %&&? IAS = amended *y Annual Improvements to IF!Ss %&&? ,ith respect to e1penditures that do not result in a recognised asset # Fuly %&&? @ffective date for amendments from IAS %=A%&&(B relating to changes in o,nership of a su*sidiary # Fanuary %&#& @ffective date of the April %&&? revisions to IAS = Fundamental Princi"le in IAS # .ll entities that prepare financial statements in conformity ith >80Ss are re;uired to present a statement of cash flos# %< 0 P a g e (he statement of cash flos analyses changes in cash and cash e;uivalents during a period# Cash and cash e;uivalents comprise cash on hand and demand deposits, together ith short,term, highly li;uid investments that are readily convertible to a !non amount of cash, and that are sub*ect to an insignificant ris! of changes in value# Guidance notes indicate that an investment normally meets the definition of a cash e;uivalent hen it has a maturity of three months or less from the date of ac;uisition# 9;uity investments are normally e)cluded, unless they are in substance a cash e;uivalent -e#g# preferred shares ac;uired ithin three months of their specified redemption date/# Ban! overdrafts hich are repayable on demand and hich form an integral part of an entity<s cash management are also included as a component of cash and cash e;uivalents# Presentation of te Statement of Cas Flo$s Cash flos must be analy&ed beteen operating, investing and financing activities# Gey principles specified by >.S I for the preparation of a statement of cash flos are as follos1 oper!tin !#ti(ities are the main revenue'producing activities of the entity that are not investing or financing activities) so operating cash flo,s include cash received from customers and cash paid to suppliers and employees in(estin !#ti(ities are the ac3uisition and disposal of long'term assets and other investments that are not considered to *e cash e3uivalents &in!n#in !#ti(ities are activities that alter the e3uity capital and *orro,ing structure of the entity interest and dividends received and paid may *e classified as operating) investing) or financing cash flo,s) provided that they are classified consistently from period cash flo,s arising from ta1es on income are normally classified as operating) to period unless they can *e specifically identified ,ith financing or investing activities for operating cash flo,s) the direct method of presentation is encouraged) *ut the indirect method is accepta*le (he direct metod shos each ma*or class of gross cash receipts and gross cash payments# (he operating cash flos section of the statement of cash flos under the direct method ould appear something li!e this1 /ash receipts from customers 11)11 1 /ash paid to suppliers 11)11 1 /ash paid to employees 11)11 %= 0 P a g e 1 /ash paid for other operating e1penses 11)11 1 Interest paid 11)11 1 Income ta1es paid 11)11 1 Net #!sh &ro* oper!tin !#ti(ities 33<33 3 (he indirect metod ad*usts accrual basis net profit or loss for the effects of non,cash transactions# (he operating cash flos section of the statement of cash flos under the indirect method ould appear something li!e this1 Profit *efore interest and income ta1es
11)11 1 Add *ack depreciation 11)11 1 Add *ack amortisation of good,ill 11)11 1 Increase in receiva*les 11)11 1 Decrease in inventories 11)11 1 Increase in trade paya*les 11)11 1 Interest e1pense 11)11 1 >ess Interest accrued *ut not yet paid 11)11 1
Interest paid 11)11 1 %( 0 P a g e Income ta1es paid 11)11 1 Net #!sh &ro* oper!tin !#ti(ities
33<33 3 the e1change rate used for translation of transactions denominated in a foreign currency should *e the rate in effect at the date of the cash flo,s cash flo,s of foreign su*sidiaries should *e translated at the e1change rates prevailing ,hen the cash flo,s took place as regards the cash flo,s of associates and +oint ventures) ,here the e3uity method is used) the statement of cash flo,s should report only cash flo,s *et,een the investor and the investee2 ,here proportionate consolidation is used) the cash flo, statement should include the venture9s share of the cash flo,s of the investee Aggregate cash flo,s relating to ac3uisitions and disposals of su*sidiaries and other *usiness units should *e presented separately and classified as investing activities) ,ith specified additional disclosures LIAS =8?M 0he aggregate cash paid or received as consideration should *e reported net of cash and cash e3uivalents ac3uired or disposed of cash flo,s from investing and financing activities should *e reported gross *y ma+or class of cash receipts and ma+or class of cash payments e1cept for the follo,ing cases) ,hich may *e reported on a net *asis" o cash receipts and payments on *ehalf of customers Afor e1ample) receipt and repayment of demand deposits *y *anks) and receipts collected on *ehalf of and paid over to the o,ner of a propertyB o cash receipts and payments for items in ,hich the turnover is 3uick) the amounts are large) and the maturities are short) generally less than three months Afor e1ample) charges and collections from credit card customers) and purchase and sale of investmentsB o cash receipts and payments relating to deposits *y financial institutions o cash advances and loans made to customers and repayments thereof investing and financing transactions ,hich do not re3uire the use of cash should *e e1cluded from the statement of cash flo,s) *ut they should *e separately disclosed else,here in the financial statements the components of cash and cash e3uivalents should *e disclosed) and a reconciliation presented to amounts reported in the statement of financial position the amount of cash and cash e3uivalents held *y the entity that is not availa*le for use *y the group should *e disclosed) together ,ith a commentary *y management %? 0 P a g e IAS,-. Events after the "e#orting )eriod IAS 85 EVENTS AFTER THE RE2ORTING 2ERIOD HISTORY OF IAS 85 / Fuly #?== @1posure Draft @#& Contingencies and E!ents "ccurring After the Balance Sheet Date .cto*er #?=( IAS #& Contingencies and E!ents "ccurring After the Balance Sheet Date effective # Fanuary #?(& #??$ IAS #& A#?=(B ,as reformatted August #??= @1posure Draft @;? Pro!isions# Contingent Liabilities and Contingent Assets Septem*er #??( IAS 8=) Provisions) /ontingent >ia*ilities and /ontingent Assets # Fuly #??? @ffective date of IAS 8=) ,hich superseded those portions of IAS #& A#?=(B dealing ,ith contingencies 6ovem*er #??( @1posure Draft @<8 E!ents After the Balance Sheet Date #( Decem*er %&&8 !evised version of IAS #& issued *y the IASB 8& 0 P a g e # Fanuary %&&; @ffective date of IAS #& A!evised %&&8B < Septem*er %&&= !etitled E!ents after the $eporting Period as a conse3uential amendment resulting from revisions to IAS # IAS'#& discusses a*out the events that take place after the end of reporting period It is defined in the follo,ing ,ays 9vent after the reporting period 1 .n event, hich could be favorable or unfavorable, that occurs beteen the end of the reporting period and the date that the financial statements are authori&ed for issue# .d*usting event 1 .n event after the reporting period that provides further evidence of conditions that e)isted at the end of the reporting period, including an event that indicates that the going concern assumption in relation to the hole or part of the enterprise is not appropriate# 2on,ad*usting event 1 .n event after the reporting period that is indicative of a condition that arose after the end of the reporting period# S#ope/ 0his standard is solely applica*le for accounting treatment and disclosure of events after the reporting period Re#onition !n" *e!s%re*ent/ An entity shall ad+ust the amounts recogniCed in the financial statements to reflect ad+usting event after the period 0he events or conditions that arose after the end of the reporting period shall not *e ad+usted in financial statements But) significant events re3uire proper disclosure Eoing concern issues arising after end of the reporting period should *e disclosed and reported properly in financial statements Dis#$os%re/ 6on'ad+usting events should *e disclosed if they are of such importance that non'disclosure ,ould affect the a*ility of users to make proper evaluations and decisions 0he re3uired disclosure is 8# 0 P a g e AaB 0he nature of the event and A*B An estimate of its financial effect or a statement that a reasona*le estimate of the effect cannot *e made LIAS #&%#M . company should update disclosures that relate to conditions that e)isted at the end of the reporting period to reflect any ne information that it receives after the reporting period about those conditions# D>.S 16#19E Com"anies must disclose (he date hen the financial statements ere authori&ed for issue and ho gave that authori&ation# >f the enterprise<s oners or others have the poer to amend the financial statements after issuance, the enterprise must disclose that fact# D>.S 16#1IE IAS, /0 "elated )arty 1isclosures 0his IAS is related ,ith related party disclosures As a significant part of the entities) the transactions and dealing ,ith related parties should *e disclosed properly as regulated *y this IAS O+9e#ti(e/ 0he o*+ective of IAS %$ is to ensure that an entityIs financial statements contain the disclosures necessary to dra, attention to the possi*ility that its financial position and profit or loss may have *een affected *y the e1istence of related parties and *y transactions and outstanding *alances ,ith such parties Who Are Related Parties? . related party is a person or entity that is related to the entity that is preparing its financial statements -referred to as the <reporting entity</# AaB A person or a close mem*er of that personIs family is related to a reporting entity if that person" o AiB has control or +oint control over the reporting entity2 8% 0 P a g e o AiiB has significant influence over the reporting entity2 or o AiiiB Is a mem*er of the key management personnel of the reporting entity or of a parent of the reporting entity A*B An entity is related to a reporting entity if any of the follo,ing conditions applies" o AiB 0he entity and the reporting entity are mem*ers of the same group A,hich means that each parent) su*sidiary and fello, su*sidiary is related to the othersB o AiiB .ne entity is an associate or +oint venture of the other entity Aor an associate or +oint venture of a mem*er of a group of ,hich the other entity is a mem*erB o AiiiB Both entities are +oint ventures of the same third party o AivB.ne entity is a +oint venture of a third entity and the other entity is an associate of the third entity o AvB 0he entity is a post'employment defined *enefit plan for the *enefit of employees of either the reporting entity or an entity related to the reporting entity If the reporting entity is itself such a plan) the sponsoring employers are also related to the reporting entity o AviB0he entity is controlled or +ointly controlled *y a person identified in AaB o AviiB A person identified in AaBAiB has significant influence over the entity or is a mem*er of the key management personnel of the entity Aor of a parent of the entityB (he folloing are deemed not to be related1 t,o entities simply *ecause they have a director or key manager in common t,o ventures ,ho share +oint control over a +oint venture providers of finance) trade unions) pu*lic utilities) and departments and agencies of a government that does not control) +ointly control or significantly influence the reporting entity) simply *y virtue of their normal dealings ,ith an entity Aeven though they may affect the freedom of action of an entity or participate in its decision'making processB a single customer) supplier) franchiser) distri*utor) or general agent ,ith ,hom an entity transacts a significant volume of *usiness merely *y virtue 88 0 P a g e of the resulting economic dependence What Are Related Party ransactions? . related party transaction is a transfer of resources, services, or obligations beteen related parties, regardless of hether a price is charged# D>.S 43#9E %isclosure Relationsi"s &et$een "arents and su&sidiaries' 0egardless of hether there have been transactions beteen a parent and a subsidiary, an entity must disclose the name of its parent and, if different, the ultimate controlling party# >f neither the entity<s parent nor the ultimate controlling party produces financial statements available for public use, the name of the ne)t most senior parent that does so must also be disclosed# Management com"ensation' +isclose !ey management personnel compensation in total and for each of the folloing categories1 short'term employee *enefits post'employment *enefits other long'term *enefits termination *enefits share'*ased payment *enefits Gey management personnel are those persons having authority and responsibility for planning, directing, and controlling the activities of the entity, directly or indirectly, including any directors -hether e)ecutive or otherise/ of the entity# Related "art( transactions' >f there have been transactions beteen related parties, disclose the nature of the related party relationship as ell as information about the transactions and outstanding balances necessary for an understanding of the potential effect of the relationship on the financial statements# (hese disclosure ould be made separately for each category of related parties and ould include1 the amount of the transactions the amount of outstanding *alances) including terms and conditions and guarantees provisions for dou*tful de*ts related to the amount of outstanding *alances e1pense recogniCed during the period in respect of *ad or dou*tful de*ts due from related parties 8$ 0 P a g e E3!*p$es o& the Kin"s o& Tr!ns!#tions th!t Are Dis#$ose" I& The- Are )ith ! Re$!te" 2!rt- / purchases or sales of goods purchases or sales of property and other assets rendering or receiving of services leases transfers of research and development transfers under license agreements transfers under finance arrangements Aincluding loans and e3uity contri*utions in cash or in kindB provision of guarantees or collateral commitments to do something if a particular event occurs or does not occur in the future) including e1ecutor contracts ArecogniCed and unrecogniCedB settlement of lia*ilities on *ehalf of the entity or *y the entity on *ehalf of another party . statement that related party transactions ere made on terms e;uivalent to those that prevail in arm<s length transactions should be made only if such terms can be substantiated# D>.S 43#41E De&inition o& re$!te" p!rt-" A related party is a person or entity that is related to the entity that is preparing its financial statements Areferred to as the Ireporting entityIB LIAS %$?M AaB A person or a close mem*er of that personIs family is related to a reporting entity if that person" AIB has control or +oint control over the reporting entity2 AiiB -as significant influence over the reporting entity2 or 8; 0 P a g e AiiiB Is a mem*er of the key management personnel of the reporting entity or of a parent of the reporting entity A*B An entity is related to a reporting entity if any of the follo,ing conditions applies" AiB 0he entity and the reporting entity are mem*ers of the same group A,hich means that each parent) su*sidiary and fello, su*sidiary is related to the othersB AiiB .ne entity is an associate or +oint venture of the other entity AiiiB Both entities are +oint ventures of the same third party AivB.ne entity is a +oint venture of a third entity and the other entity is an associate of the third entity AvB 0he entity is a post'employment defined *enefit plan for the *enefit of employees of either the reporting entity or an entity related to the reporting entity If the reporting entity is itself such a plan) the sponsoring employers are also related to the reporting entity AviB 0he entity is controlled or +ointly controlled *y a person identified in AaB AviiB A person identified in AaB AiB has significant influence over the entity or is a mem*er of the key management personnel of the entity Aor of a parent of the entityB S#ope/ Applica*le on *oth separate and consolidated financial statements 2%rpose o& re$!te" p!rt- "is#$os%res/ # !elated party transactions may affect financial performance and position % Presence of control) +oint control and significant influence Dis#$os%res re$!tin to re$!te" p!rties/ 8< 0 P a g e #B !elationships *et,een parents and su*sidiaries . !egardless of ,hether there have *een transactions *et,een a parent and a su*sidiary) an entity must disclose the name of its parent and) if different) the ultimate controlling party If neither the entityIs parent nor the ultimate controlling party produces financial statements availa*le for pu*lic use) the name of the ne1t most senior parent that does so must also *e disclosed LIAS %$#<M %B Management /ompensation . Disclose key management personnel compensation in total and for each of the follo,ing categories" short'term employee *enefits post'employment *enefits other long'term *enefits termination *enefits share'*ased payment *enefits 8B !elated Party 0ransactions . If there have *een transactions *et,een related parties) disclose the nature of the related party relationship as ,ell as information a*out the transactions and outstanding *alances necessary for an understanding of the potential effect of the relationship on the financial statements 0hese disclosure ,ould *e made separately for each category of related parties and ,ould include" LIAS %$#('#?M 0he amount of the transactions 0he amount of outstanding *alances) including terms and conditions and guarantees provisions for dou*tful de*ts related to the amount of outstanding *alances @1pense recogniCed during the period in respect of *ad or dou*tful de*ts due from related parties I*"S , .2 O#erating Segments 8= 0 P a g e S#ope/ IF!S ( applies to the separate or individual financial statements of an entity Aand to the consolidated financial statements of a group ,ith a parentB" :hose de*t or e3uity instruments are traded in a pu*lic market2 or 0hat files) or is in the process of filing) its AconsolidatedB financial statements ,ith a securities commission or other regulatory organiCation for the purpose of issuing any class of instruments in a pu*lic market -o,ever) ,hen *oth separate and consolidated financial statements for the parent are presented in a single financial report) segment information need *e presented only on the *asis of the consolidated financial statements Oper!tin Se*ents/ As per IF!S G () an operating segment is a component of an entity" 0hat engages in *usiness activities from ,hich it may earn revenues and incur e1penses Aincluding revenues and e1penses relating to transactions ,ith other components of the same entityB2 :hose operating results are revie,ed regularly *y the entityIs chief operating decision maker to make decisions a*out resources to *e allocated to the segment and assess its performance2 and For ,hich discrete financial information is availa*le Report!+$e se*ents/ IF!S ( re3uires an entity to report financial and descriptive information a*out its reporta*le segments !eporta*le segments are operating segments or aggregations of operating segments that meet specified criteria" Its reported revenue) from *oth e1ternal customers and inter segment sales or transfers) is #&J or more of the com*ined revenue) internal and e1ternal) of all operating segments2 or 0he a*solute measure of its reported profit or loss is #&J or more of the greater) in a*solute amount) of AiB the com*ined reported profit of all operating segments that did not report a loss and AiiB the com*ined reported loss of all operating segments that reported a loss2 or 8( 0 P a g e Its assets are #&J or more of the com*ined assets of all operating segments If the total e1ternal revenue reported *y operating segments constitutes less than =;J of the entityIs revenue) additional operating segments must *e identified as reporta*le segments Aeven if they do not meet the 3uantitative thresholds set out a*oveB until at least =;J of the entityIs revenue is included in reporta*le segments IFRS)#* IAS)+, and +-: Financial Instruments Ab*ectives and scope of Financial instruments are addressed in three standards1 >.S 34, hich deals ith distinguishing debt from e;uity and ith nettingC >.S 39, hich contains re;uirements for recognition and measurementC and >80S I hich deals ith disclosures' (he ob*ective of the three standards is to establish re;uirements for all aspects of accounting for financial instruments* including distinguishing debt from e;uity, netting, recognition, derecognation, measurement, hedge accounting and disclosure' (he scope of the standards is ide,ranging# (he standards cover all types of financial instrument, including receivables, payables, investments in bonds and shares, borroings and derivatives# (hey also apply to certain contracts to buy or sell non, financial assets -such as commodities/ that can be net settled in cash or another financial instrument# 2ature and characteristics of financial instruments 8inancial instruments include a ide range of assets and liabilities# (hey can mostly be e)changed for cash# (hey are recogni&ed and measured according to >.S 39 re;uirements and are disclosed in accordance ith >80S I# 8inancial instruments represent contractual rights or obligations to receive or pay cash or other financial asset# . financial asset is cashC a contractual right to receive cash or another financial assetC a contractual right to e)change financial assets or liabilities ith another entity under conditions that are potentially favorableC or an e;uity 8? 0 P a g e instrument of another entity# . financial liability is a contractual obligation to deliver cash or another financial asset or to e)change financial instruments ith another entity under conditions that are potentially unfavorable# .n e;uity instrument is any contract that evidences a residual interest in the entityJs assets after deducting all its liabilities# . derivative is a financial instrument that derives its value from an underlying price or inde), re;uires little or no initial investment and is settled at a future date# >n some cases contracts to receive or deliver a companyJs on e;uity can also be derivatives# Presentation and %isclosure (here have been significant developments in ris! management concepts and practices in recent years# 2e techni;ues have evolved for measuring and managing e)posures to ris!s arising from financial instruments# (he need for more relevant information and improved transparency about an entityJs e)posures arising from financial instruments and ho those ris!s are managed has become greater# 8inancial statement users and other investors need such information to ma!e more informed *udgments about ris!s that entities run from the use of financial instruments and their associated returns# Foever, the disclosures in >.S 36 -disclosure re;uirements for ban!s and similar financial institutions/ and >.S 34 ere no longer in !eeping ith such developments, and there as a need to revise and enhance the disclosure frameor! for ris!s arising from financial instruments# >80S I K8inancial instruments disclosuresJ as issued in .ugust 4667 to address this need# >80S I sets out disclosure re;uirements that are intended to enable users to evaluate the significance of financial instruments for an entityJs financial position and performance and to understand the nature and e)tent of ris!s arising from those financial instruments to hich the entity is e)posed# >80S I does not *ust apply to ban!s and financial institutions# .ll entities that have financial instruments are affected, even simple instruments such as borroings, accounts payable and receivable, cash and investments# $& 0 P a g e IAS => Interi* &in!n#i!$ report O&.ecti/e of IAS +0 (he ob*ective of >.S 33 is to prescribe the minimum content of an interim financial report and to prescribe the principles for recognition and measurement in financial statements presented for an interim period# 1e( %efinitions >nterim period1 a financial reporting period shorter than a full financial year -most typically a ;uarter or half,year/# >nterim financial report1 a financial report that contains either a complete or condensed set of financial statements for an interim period# Matters 2eft to 2ocal Regulators >.S 33 specifies the content of an interim financial report that is described as conforming to >nternational 8inancial 0eporting Standards# Foever, >.S 33 does not mandate1 ,hich entities should pu*lish interim financial reports) ho, fre3uently) or ho, soon after the end of an interim period Such matters ,ill *e decided *y national governments) securities regulators) stock e1changes) and accountancy *odies Foever, the Standard encourages publicly,traded entities to provide interim financial reports that conform to the recognition, measurement, and disclosure principles set out in >.S 33, at least as of the end of the first half of their financial year, such reports to be made available not later than "6 days after the end of the interim period# Minimum Content of an Interim Financial Re"ort (he minimum components specified for an interim financial report are1 a condensed *alance sheet Astatement of financial positionB either AaB a condensed statement of comprehensive income or A*B a condensed statement of comprehensive income and a condensed income statement $# 0 P a g e a condensed statement of changes in e3uity a condensed statement of cash flo,s selected e1planatory notes If a complete set of financial statements is pu*lished in the interim report) those financial statements should *e in full compliance ,ith IF!Ss >f the financial statements are condensed, they should include, at a minimum, each of the headings and sub,totals included in the most recent annual financial statements and the e)planatory notes re;uired by >.S 33# .dditional line,items or notes should be included if their omission ould ma!e the interim financial information misleading# >f the annual financial statements ere consolidated -group/ statements, the interim statements should be group statements as ell# (he periods to be covered by the interim financial statements are as follos1 *alance sheet Astatement of financial positionB as of the end of the current interim period and a comparative *alance sheet as of the end of the immediately preceding financial year statement of comprehensive income Aand income statement) if presentedB for the current interim period and cumulatively for the current financial year to date) ,ith comparative statements for the compara*le interim periods Acurrent and year'to'dateB of the immediately preceding financial year statement of changes in e3uity cumulatively for the current financial year to date) ,ith a comparative statement for the compara*le year'to'date period of the immediately preceding financial year statement of cash flo,s cumulatively for the current financial year to date) ,ith a comparative statement for the compara*le year'to'date period of the immediately preceding financial year If the companyIs *usiness is highly seasonal) IAS 8$ encourages disclosure of financial information for the latest #% months) and comparative information for the prior #%'month period) in addition to the interim period financial statements Note %isclosures (he e)planatory notes re;uired are designed to provide an e)planation of events and transactions that are significant to an understanding of the changes in financial position and performance of the entity since the last annual reporting date# >.S 33 states a presumption that anyone ho reads an entity<s interim report ill also have access to its most recent annual report# Conse;uently, >.S 33 avoids repeating $% 0 P a g e annual disclosures in interim condensed reports# E3!*p$es o& Note Dis#$os%res in Interi* Con"ense" Reports/ accounting policy changes seasonality or cyclicality of operations unusual and significant items changes in estimates issuances) repurchases) and repayments of de*t and e3uity securities dividends paid a fe, items of segment information Afor those entities re3uired *y IF!S ( to report segment information annuallyB significant events after the end of the interim period *usiness com*inations long'term investments restructurings and reversals of restructuring provisions discontinued operations changes in contingent lia*ilities and contingent assets corrections of prior period errors ,rite'do,n of inventory to net realiCa*le value impairment loss on property) plant) and e3uipment2 intangi*les2 or other assets) and reversal of such impairment loss litigation settlements any de*t default or any *reach of a de*t covenant that has not *een corrected su*se3uently $8 0 P a g e related party transactions ac3uisitions and disposals of property) plant) and e3uipment /ommitments to purchase property) plant) and e3uipment Accounting Policies (he same accounting policies should be applied for interim reporting as are applied in the entity<s annual financial statements, e)cept for accounting policy changes made after the date of the most recent annual financial statements that are to be reflected in the ne)t annual financial statements# . !ey provision of >.S 33 is that an entity should use the same accounting policy throughout a single financial year# >f a decision is made to change a policy mid,year, the change is implemented retrospectively, and previously reported interim data is restated# Measurement 'easurements for interim reporting purposes should be made on a year,to,date basis, so that the fre;uency of the entity<s reporting does not affect the measurement of its annual results# Several important measurement points1 !evenues that are received seasonally) cyclically or occasionally ,ithin a financial year should not *e anticipated or deferred as of the interim date) if anticipation or deferral ,ould not *e appropriate at the end of the financial year /osts that are incurred unevenly during a financial year should *e anticipated or deferred for interim reporting purposes if) and only if) it is also appropriate to anticipate or defer that type of cost at the end of the financial year Income ta1 e1pense should *e recogniCed *ased on the *est estimate of the ,eighted average annual effective income ta1 rate e1pected for the full financial year .n appendi) to >.S 33 provides guidance for applying the basic recognition and measurement principles at interim dates to various types of asset, liability, income, and e)pense# !ateriality >n deciding ho to recogni&e measure, classify, or disclose an item for interim $$ 0 P a g e financial reporting purposes, materiality is to be assessed in relation to the interim period financial data, not forecasted annual data# %isclosure in Annual Financial Statements >f an estimate of an amount reported in an interim period is changed significantly during the financial interim period in the financial year but a separate financial report is not published for that period, the nature and amount of that change must be disclosed in the notes to the annual financial statements# Chapter -0$ -Co mpliance with the "e%uirements of IAs & I!"-# IAS - 3 )resentation of *inancial Statements Serial No. Content Compliance Status Explanation '. Ob4ective of %inancial #tatements 5 to provide information about financial position, financial performance, and cash flows of an entity that is useful to a wide range of users in making economic decisions. .IA#6'.7/ /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited) U/B> Bank ltd For meeting the o*+ective) the entity has provided information a*out assets) lia*ilities) e3uity) income and e1penses) including gains and losses) other changes in e3uity) cash flo,s 8. All components of financial statements are included .IA#6'.9/ Do All entities have provided all components) ie Balance Sheet) Profit & >oss Account) /hange in @3uity) /ash'Flo, Statement) 6otes & Disclosures) *ut they $; 0 P a g e have not changed the name of the their financial statements according to re3uirement of IASs in time 7. %air presentation and compliance with .I%&# 6'.'76'.'9/ Do All entities9 financial statements have fairly presented the financial position) financial performance and cash' flo,s of the entities :. ;isclosure about entity<s ability to continue as !oing -oncern .IA#6'.87/ Do All entities have prepared the financial statements on the *asis of going concern assumption2 there is no uncertainty a*out the going concern of the entities =. %ollow accrual basis of accounting .IA#6'.8=/ Do All entities have prepared their financial statements follo,ing the accrual *asis) *ut not cash'flo, statement >. "resentation ? classification of financial statement are on consistency basis..IA#6'.8@/ Do All entities have presented & classified all items of financial statements from period to period consistently @. Aaterial class of similar items to be presented separately ? immaterial dissimilar items to be aggregated. .IA#6'.81/ Do 0hey have presented material class of similar items separately) aggregated immaterial dissimilar items 9. Assets ? liabilities and income ? e,penses should not be offset. .IA#6 '.78/ Partially complied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited Under general *anking transactions) lia*ilities against acceptance) endorsement and other o*ligations and *ills against ,hich acceptances have *een given and claims e1ist their agreement have *een sho,n as off' *alance sheet items Financial assets and financial lia*ilities are offset and the net amount reported in the *alance sheet ,hen they is a legally enforcea*le right $< 0 P a g e to offset the recogniCed amounts and there is an intention to settle on a net *asis or realiCe the assets and settle the lia*ility su*stantially 1. -omparative information. .IA#6'.79/ /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited) U/B> Bank ltd 0hey have disclosed comparative information in respect of the previous period for amounts reported on the face of the financial statements and notes '(. %inancial #tatements are to be prepared annually. .IA#6'.:1/ Do All the entities have prepared the financial statements annually2 they have follo,ed accounting year ,hich is from the first Fanuary to 8# st Decem*er ''. #eparation of current and non6current assets and liabilities. Ainimum items on the face of the 0alance #heet. .IA#6'.=8,'.=@,'.>:, '.>9,'.>1/ Do 0hey have separated current and non'current assets and lia*ilities All items re3uired for *alance sheet have presented properly) *ut they have not provided information a*out *iological assets) investments accounted for using e3uity method) inventories *ecause these entities are in *anking industries '8. Ainimum items on the face of Income #tatement, allocation of profit, certain special items, analysis of e,penses on the basis of nature or function.. IA#6 '.9','.98,'.9=,'.9>, '.9@,'.99,'.17/ Do 0hey have properly presented all information re3uired *y the IAS'#(# for preparation of the income statement) *ut not presented any information a*out the other comprehensive income 0hey have sho,n allocation of their profit and loss) other information re3uired *y IAS'#(<) #(=) #(( $= 0 P a g e 0hey have not analyCed their e1pensed *ased on the nature) *ut on function '7. Ainimum items on the face of the #tatement of -hanges in +)uity are presented ,disclosure about issued share capital and reserve .IA#6 '.1>,'.1@/ Do 0hey have provided information a*out the statement of changes of e3uity) including profit and loss for the period) capital transactions ,ith o,ners and disclosure a*out issued share capital and reserve ':. Botes to the financial statements.IA#6 '.(7,'.(:,'.(=/ Do All entities have provided information a*out the *asis of preparation of the financial statements) other information re3uired for the understanda*ility of information provided '=. ;isclosure of 4udgment.'.'7/ 6ot complied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) and I/B Islamic Bank >imited 6o information has *een provided a*out the disclosure of +udgment '>. ;isclosure of key sources of estimation uncertainty Do 0hey have not provided any information a*out the key source of estimation uncertainty '@. ;isclosure about dividend.'.1=/ /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited Sufficient information has *een provided regarding dividend '9. -ertain items about domicile, registered office, activities, country of incorporation .IA#6'.'8=/ Do 0hey have provided information a*out the domicile of the *usiness) country of incorporation) address of registered office) operation & principal activities of the $( 0 P a g e enterprise IAS 07: Cash Flow Statement Serial No. Content Compliance Status Explanation '. "roper classification of activities /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited Almost all the companies are complied ,ith this provision 8. -lassification of activities followed consistently from year to year Do Almost all the companies are complied ,ith this provision 7. %ollow the recommendation of using direct method for presenting operating activities Do All the companies follo, the direct method of presenting cash flo, statements All though under indirect method it is easy to prepare the cash flo, statements *ut companies prepare its financial statement under direct methods for presenting information properly :. +,clusion of non6cash transactions /omplied *y one *ank) pu*ali *ank) 6// *ank *ut other t,o did not comply Although non cash transactions are properly recorded in the cash flo, statements *y some companies /ompanies like I/B Islamic *ank) Shah+alal *ank did not provide any non cash transaction in its statement =. &eporting cash flows on gross basis /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// As companies prepare their statements under direct method So the prepare it on gross *asis $? 0 P a g e Bank >imited) I/B Islamic Bank >imited >. "roper and ade)uate disclosures are provided Do As they prepare their cash flo, statement *y direct method 6otes sho,ing the cash receipts and payment from & to different sources is provided IAS 10: Events after Balance Sheet Date Serial No. Content Compliance Status Explanation '. Ad4ustment of the ad4usting events in the %inancial #tatements /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited All the companies ad+usted necessary ad+usting events in the financial statements 8. ;isclosures about non6ad4usting events /omplied *y 6// Bank) I/B Islami Bank) Pu*ali *ank >0D Most of the companies disclosed the significant non ad+usting events although some companies like Shah+alal Islami *ank & .ne *ank Didn9t disclosed any information regarding this 7. ;isclosure about authorization date of issue /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited Al the companies make disclosure a*out authoriCation date of issue IA - 2$. "e)ated 'arty Disc)osure ;& 0 P a g e Serial No. Content Compliance Status Explanation '. ;isclosure of the name of related parties. /omplied *y Pu*ali Bank >imited) .ne Bank >imited) Shaha+al Bank >imited) 6// Bank >imited) I/B Islamic Bank >imited All the companies disclosed the name of related parties 8. ;isclosure relationship with related parties. Do All the companies provided necessary information a*out relationship ,ith related party 7. ;isclosure of types of transactions and their total value. Do All the companies disclosed the types of transactions and their total values I!" - 0#. Operatin0 e0ments Serial No. Content Compliance Status Explanation '. Information about the primary format for segment 6ot applica*le 0here are no operating segments availa*le in the companies 8. &eview of operating results by management 6ot applica*le 0here are no operating segments availa*le in the companies 7. "rocess of identification of operating segment 6ot applica*le 0here are no operating segments availa*le in the companies :. #egment Information 6ot applica*le 0here are no operating segments availa*le in the companies =. "roper disclosures as re)uired 6ot applica*le 0here are no operating segments availa*le in the companies ;# 0 P a g e I!" - 3$. Interim !inancia) "eportin0 Serial No. Content Compliance Status Explanation '. Information about interim financial reporting 6ot applica*le 0here are no interim financial information 8. -ondensed balance sheet 6ot applica*le 0here are no interim financial information 7. -ondensed different sratement 6ot applica*le 0here are no interim financial information :. #elected +,planatory notes 6ot applica*le 0here are no selected e1planatory notes =. "roper disclosures as re)uired 6ot applica*le 0here are no interim financial information I!" - /1 IA 32 and 32 !inancia) instrument Serial No. Content Compliance Status Explanation '. &isk management /omply ,ith every *ank 0here are financial information a*out risk and related policy 8. #ignificant financial Instrument U/B> Bank) .ne Bank and partly ,ith other Bank 0here are presented accordance significantly 7. Bature and +,tend of risk /omply ,ith every Bank 0here are presented nature and e1tend of risk of instrument :. 0orrowing and payable /omply ,ith every Bank 0hey presented their Borro,ing and paya*le =. "roper disclosures as re)uired All the Bank does not provide properly 0here are information ,hich is not sufficient ;% 0 P a g e Comments on the Com#liance with the "e4uirements of IASs and I*"S,2 %rom the compliance status table and the information provided in the annual reports of the companies selected, it is clearly evident that almost all of the companies are adopting the best practices and following rules and regulations of International Accounting #tandards .IA#/ properly and strongly. All of the companies move forward for achieving their desired goals through the adoption and monitoring of corporate strategies, prudent business plan, monitoring of ma4or risks of the company<s business and ensuring that the company pursues policies and procedures to satisfy its legal, ethical and reporting responsibilities. All of companies have fulfilled the ob4ectives of providing financial statements meaning that they provide proper information about financial position, financial performance and cash flows. 3he managements of the companies ensure that their resources are ade)uate to support the operation and that sufficient business opportunities e,ist to )ualify the organization as a going concern! 3he accounting policies have been applied consistently to all periods presented in their financial statements. 3he minimum re)uired items for all the components of financial statements are included in the annual report of all the companies. 0esides, proper disclosures about entities< issued share capital and reserve, dividend, 4udgment and key sources of estimation have also been provided. All the companies that we selected prepare the #tatement of -ash %low thoroughly in accordance with IA# 5 (@. 3hey properly classified the activities in to Operating, Investing, and %inancing activities and followed the classification consistently from year to year. 3he cash flow from operating activities has been presented under ;irect Aethod, as recommended by IA# 5 (@, by all the companies. As our selected companies are pharmaceutical companies and they are ;8 0 P a g e non6financial institutions by nature, they report the cash flows on gross basis. In addition to these, proper and ade)uate disclosures under IA# 5 (@ are also presented. All selected companies provided ade)uate and useful disclosures about the name of related parties, relationships, types of transactions and nature and their total value. %inally, I can state that the selected companies e,cept some re)uirements, have adopted and followed the process, procedures and re)uirements stated by IA# 5 (', IA# 5 (@, IA# 5 '(, IA# 5 8:. As I am concerned with banking industries, this industry has no product segmentation, only segmentation can have is geographical segmentation. 0ut they do not show any information about geographical segmentation because they prepare financial statements as a whole for the financial reporting purposes. Chapter -03- Conc)udin0 'art )roblem Identified #B @nough information regarding /ompliance of different IASs are not provided *y the company %B /ompanies do not follo, all the provisions of different IASs 8B @nough disclosure has not *een provided in the financial statements $B 0he presentation of financial statements of the companies is not properly sho,n according to all the provisions of IASs ;B Financing polices of the companies are not sho,n in proper ,ay Conclusion +nsuring high6)uality corporate financial reporting environment depends on effective enforcement mechanisms. Aerely adopting international accounting and auditing standards is not enough. Accounting profession is seeking to adopt all applicable IA#s but such decision is continually driven by institutional legitimization rather than careful appreciation of the differing conte,tual variables in 0angladesh. In fact, after a long period without any involvement or interference with the practice of accounting, the government of 0angladesh, in response to the ;$ 0 P a g e immense pressure by the international lending and donor agencies to standardize financial reporting, has started lobbying the accounting profession to adopt all applicable IA#s$I%&#s for use in 0angladesh. In spite of several problems and difficulties, the I-A0 is continuously trying to ensure the world class )uality of the financial statements produced by the local and multinational companies operating in 0angladesh. In 0anking Industry of our country, e,cept some deviations, the overall compliance status with the selected IA#s for the purpose of preparation of this report is satisfactory. "eferences # Annual !eport of Shah+alal Islami Bank ltd % Annual !eport of .ne Bank ltd 8 Annual !eport of 6// Bank ltd $ Annual !eport of I/B Islamic Bank >td ; Annual reporr on U/B> *ank ltd < Annual !eport of Pu*ali Bank ltd = International Accounting Standards'&# ( International Accounting Standards'&= ? International Accounting Standards'#& #& International Accounting Standards'%$ ## International Financial !eporting Standards'&( ;; 0 P a g e